Filed under: News
Six people were arrested Wednesday for income fraud with regards to residency requirements for a government-subsidized housing development in Augusta, Ga., but the sweep is just the tip of the iceberg. Warrants were issued for 80 more arrests and so far 54 people have been taken to jail. These individuals are being arrested on charges of theft by taking and/or providing false statements for fraudulently obtaining federal funding for the Section 8 Housing Choice Voucher program, which is administered through the Georgia Department of Community Affairs Housing Choice Voucher program.
Operation Clean House, spearheaded by the Georgia Department of Community Affairs and HUD's Office of the Inspector General, focused on the 149 Georgia counties where Section 8 housing is managed by the state Department of Community Affairs (DCA). Those counties serve over 15,000 families and provide $100 million in federal subsidies a year. The average recipient family has two to three members and receives a subsidy of between $600 to $1,000 a month.
According to the Georgia Bureau of Investigations (GBI), if someone receives housing benefits that they are not legally entitled to, they are not only stealing money from taxpayers but from the people who really need the program. The fraud involved in these cases totaled approximately $1.1 million, which is money that could be returned to the program during prosecution. This money could then be distributed to people who are truly in need of financial assistance for housing.
The Section 8 program offers subsidized rental units for the elderly, those who are low-income or disabled. Eligible individuals pay a portion of the rent that is based on their income. The feds will cover anything above 30 percent of your adjusted monthly income up to an established limit.
The arrests are targeting people who have lied about their income and/or the number of folks in their household. Some individuals even had second jobs that they kept secret.
"We appreciate the combined efforts of the HUD Office of Inspector General, GBI and DCA to combat housing fraud by arresting those that are violating the law and depriving especially those in need of affordable housing. We have zero tolerance for such fraud and are committed to aggressively working to identify and help prosecute any individuals that would seek to defraud or abuse this essential program," said U.S. HUD Southeast Regional Administrator Edward Jennings, Jr.
GBI's director, Vernon Keenan, has asked those who have made false statements on their Section 8 application to come forward. Leniency may be granted to those individuals who are willing to correct the error of their ways. Those who are courageous enough to admit what they've done will have to leave their housing situation and pay back what they owe but will probably not face prosecution.
If there are more Section 8 cheats lurking throughout the state, Jennings has a few choice words for them:
"We have zero tolerance for [Section 8] fraud and are committed to aggressively working to identify and help prosecute any individuals that would seek to defraud or abuse this essential program."
If you know of someone who is committing Section 8 fraud and want to blow the whistle, contact 800-347-3735.